Plum Creek will pay $869 million for 501,000 acres of woodlands in Alabama, Georgia, South Carolina, Virginia and West Virginia and $152 million for “high value” rural lands and development-quality lands near Charleston, S.C., the company said Monday after the market’s close.

The deal with Richmond, Va.-based MeadWestvaco, a maker of consumer packaging with operations in North America, Asia, Europe and South America, also includes $65 million for subsurface rights, mineral rights and wind-power assets associated with the timberlands, Plum Creek said.

At closing, Plum Creek will pay MeadWestvaco $226 million in cash and issue an $860 million, 10-year installment note for the assets, Plum Creek said.

Both companies also agreed to form joint ventures to develop lands in South Carolina, MeadWestvaco said. Most of the proceeds from the transaction will be distributed to MeadWestvaco shareholders, the packaging maker said.